March 2017

Canadian homeowners carried an average of $190,000 in mortgage debt in 2015

This according to a Manulife Bank of Canada survey. That’s a lot of money to owe a lender and thousands of dollars in interest to pay over the life of a mortgage.

One way to limit the amount of interest you pay is to pay off your mortgage faster than your agreed upon amortization schedule. Quickly paying down your mortgage will reduce the principal and thus reduce your interest charges. More money for you, less money for your lender.

Fortunately, there are several ways to pay your mortgage off quickly that require almost no effort. Let’s take a look at them below.

Have the recent government changes effected your home buying choices?

Call it the gap between what you have to pay and what you can afford to pay — it’s going to be considerable when you qualify for your next mortgage. Now the question is what should you do with that money?

Ottawa tightened mortgage rules in October and the one requirement that has disrupted the lending world is the stipulation that consumers qualify based on the Bank of Canada posted rate for a five-year fixed-rate mortgage.

That rate — it’s based on the most common posted rate of the big six banks for a five-year fixed rate mortgage — has been stuck at 4.64 per cent since the government announced the new measures in October 2016. Qualifying with that rate is a heavy burden and

Here's what you should – and shouldn’t – buy

by Rob Carrick -Personal Finance Columnist - The Globe and Mail

The downside of bank upselling is that customers get talked into buying junk products they don’t need.

According to the bank tellers pouring their hearts out to CBC in a series of recent reports, upselling is rampant because of pressure to meet sales targets. A customer’s best defence is to know which sales pitches are worth listening to, and which to shut down. To help promote more informed banking, the Personal Finance column presents this guide to bank products.

Buy this

Overdraft protection: Essential for households where money is constantly flying in and out of chequing accounts to cover automatic payments, mortgages,

Taking current economic and fiscal realities into account, it would be far more sensible to pay the initial 20 per cent down payment for a home purchase in full instead of saving the money for later, according to a veteran industry analyst.

In a March 10 piece for The Globe and Mail, markets observer Rob Carrick argued that the mortgage environment of today does not favor those who carefully save and spend their hard-earned funds.

“Home buyers who put less than 20 per cent down are seen as risky enough to require that they pay the cost of default insurance for their lender. But the best mortgage rates are in some cases going to people with small down payments,” Carrick wrote.

“The indignities for diligent savers are piling up. You’ll earn next to no

Thinking of buying your own place? It’s normal to feel a little overwhelmed.

After all, it’s the biggest purchase you can make. In an effort to remove some stress from the equation, here are a few tips from the experts.

What to do when you’re a first-time home-buyer:

1. Get pre-approved.

Some real estate agents won’t even work with you until you’ve been pre-approved for a mortgage. This is an important first step in the home-buying process. You don’t want to start house-hunting and fall for a home you can’t afford.

Plus, there may be problems with your credit that you don’t know about.

“Sometimes people are just unaware that they may have like a Sears card that they forgot to cancel and it’s caused a problem on your credit rating,”

Some real estate brokerages have ads and billboards that imply that all real estate transactions are as easy as 1-2-3!

In reality, a lot of work goes on, both on-scene and off, to ensure the smooth, successful sale of your home. Here is a snapshot of Danielle’s services and what you can expect during the home selling process:

Pre-listing Preparation

To prepare your property for listing, Danielle will help you take a look at your home through the eyes of a potential buyer. What impression does your house give — both inside and out? A small investment in repairs, decoration and organization, both inside and outside your home, could add thousands of dollars to your property value.

Opinion of Value

Looking to move to Kamloops? Want to know more about the city?

Here is an article first published on a lawstudents.ca website highlighting the experience of a couple moving from Calgary to Kamloops.

When we moved to Kamloops from Calgary, I thought for sure that I would miss the hustle and bustle of the big city, along with its zany politics and daily happenings. We lived in Hillhurst (inner city) and took advantage of Calgary's many festivals, farmers' markets, restaurants and night life. While I was sure I would make friends and that law school would provide more than enough entertainment, I expected Kamloops life to be otherwise pretty boring. Probably a fairly natural big city perspective. Those coming from Vancouver had much the same

Becoming a landlord can seem very appealing.

There is a large influx of people to BC, Alberta and Ontario and they all need a place to live. But before you dive headfirst into this potentially lucrative pool, there are some things to consider. Aren’t there always?

Down Payment

You will need at least 20% of your own resources to put down. That can be a lot of money. On a $300,000 property you will need $60,000. On top of this, you have the other costs to complete the purchase such as legal fees, title insurance and potential mortgage insurer fees. Some lenders will still utilize the mortgage insurers to lessen their overall risk on a rental property and that cost is passed onto the purchaser.

There are a number of advantages and disadvantages to buying a property and then renting it out. Talk to an accountant, lawyer, mortgage broker or other financial expert about how it may affect your taxes and financial situation. As always use a great local Realtor to help you make the right decision in locating a property that would work for the purposes of renting out and making sure the zoning is correct.

3 key advantages

1. You pay less tax

You can deduct certain expenses from your income – reducing the taxes you owe. The list includes: